Finally - 12 years in the making - I will be starting a 2K challenge on December 26th, pending any possible unforeseen hiccups. I moved the date back due to the Holiday and to give more time to get this setup properly. If you don’t know what the challenge is, it’s when I look to take a 2K account and multiply it many times over. Here is a link of one in the past and is most of the reason folks have been asking me to do it again over the years:
I feel like market conditions are finally setup for some nice opportunities, especially into 2024. That being said, anyone following the challenge should expect the $2k account to go to zero. A majority of my trades are high risk, short dated options. With that risk comes the possibility of some nice rewards. So those looking for the rewards need to prepare themselves for that risk and the possibility of losing money.
I think that if there is anything I can hang my hat onto, it is that I tend to find undiscovered gems - typically small-cap or undervalued names. The issue trading options on those names is the liquidity, or lack thereof, which further complicates folks trying to follow my trades. By the time someone may try and place an order, the ask or bid may have changed. I have gotten quite a few messages over the years of folks who have tried to use this to their advantage. For example, if they can fill at the price I entered at, they know they will likely be able to exit for a gain a few minutes later as folks try to enter the position and market markers move the ask up. For this reason I will have a limit on the amount of participants and will use a seniority based system… ie. oldest OM members will have first access in the order of the date they joined.
Lastly, this is a 2k Challenge, so I wouldn’t expect to see 100 contracts hit the offer at .50 after I post an entry… out of respect to the people participating and myself.
- The Challenge will be limited - likely 30 - and entry into it will be prioritized by membership tenure. After that, it will be first come basis and then there will be a waiting list, ect. You must be a platinum member to have access.
- There will be a new channel in the chatroom, accessible only to those in the challenge. It will be read only and I would suggest you enable push notifications from that room for the alert when I place a trade. I am also thinking of creating an ‘X’ account to post trades, but think it will be easier handle if there is just one location.
- When I place a trade, it will be in this format: [stock ticker] [expiration date] [strike price] [option price] [quantity] - so the big difference from the normal alert is the sizing. Most trades will likely be in the range of $200-$250. The only other big difference is the trade will only be shared with the challenge group. I will likely share with the main group after 10 minutes with the disclaimer it is a 2k challenge trade and then possibly offer up a different strike with a similar risk/reward.
- And lastly, there will be an end of day post, available only to 2k challenge followers on the OM site, with an update of positions.
If you are interested in doing the challenge, all you need to do is email firstname.lastname@example.org (and if you can copy email@example.com) with your OM username, Chatroom username, and put 2k Challenge in the header. If you want the email to be the same one you sent the email from, then that is all you need to do to get access, otherwise include the email address you would like to use for correspondence.
I will look to have the participant list finalized by December 23rd, and then will send out emails with instructions and more details. Feel free to ask any questions or give any feedback as I would like this to run as smoothly as possible.
Let’s have a great end to 2023 and looking forward to 2024. Thanks!